Diageo plc

The U.S. Securities and Exchange Commission found that Diageo plc violated the Foreign Corrupt Practices Act's books-and-records and internal-controls provisions in connection with improper payments made through subsidiaries in India, Thailand and South Korea. The SEC stated that more than $2.7 million in improper payments were made to obtain sales and tax benefits. It also found that the payments were improperly recorded, concealed as legitimate expenses or described using false or overly vague accounting entries. Without admitting or denying the SEC's findings, Diageo agreed to pay $11,306,081 in disgorgement, $2,067,739 in prejudgment interest and a $3 million civil penalty—more than $16 million in total. This is separate from the previously entered Diageo misleading-disclosure case and is duplicate-safe by title. Source / proof: U.S. Securities and Exchange Commission: https://www.sec.gov/newsroom/press-releases/2011-158-sec-charges-liquor-giant-diageo-fcpa-violations

In February 2020, Diageo plc agreed to pay a $5 million penalty to settle a U.S. Securities and Exchange Commission enforcement action concerning disclosures in fiscal years 2014 and 2015. The SEC found that employees at Diageo North America pressured distributors to purchase products beyond market demand to meet internal sales targets. The increased shipments helped Diageo report higher growth in performance indicators followed by investors and analysts. The SEC found that Diageo failed to disclose the resulting trends and left investors with the misleading impression that the reported growth resulted from normal customer demand. Diageo settled without admitting or denying the SEC's findings. Source / proof: U.S. Securities and Exchange Commission: https://www.sec.gov/newsroom/press-releases/2020-36